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2025 (4) TMI 716 - AT - Income TaxCPC has not allowed the concessional rate of tax even though the assessee has opted for concessional rate u/s. 115BAA and filed the required form within time - HELD THAT - The assessee has filed Form-10IC on 15.12.2020 opting for concessional tax rate u/s. 115BAA of the Act. The intimation notice u/s 143(1) for A.Y 2021-22 also clearly mentions at Sr. No.1 that the assessee has opted for concessional tax rate u/s 115BAA of the Act. Therefore the Ld. CIT(A) was not justified to hold that the assessee has not opted for concessional tax rate u/s 115BAA. We accordingly set aside the order of Ld. CIT(A) and direct A.O to compute the tax at concessional rate as opted by the assessee. Appeal of the assessee is allowed.
The Appellate Tribunal ITAT Chennai, comprising Judicial Member Shri Aby T. Varkey and Accountant Member Shri Jagadish, addressed an appeal concerning the assessment year 2021-22. The appeal arose from an order by the Commissioner of Income Tax (Appeals), Gurugram, dated February 23, 2024, regarding an intimation under section 143(1) of the Income-tax Act, 1961, issued by the Centralized Processing Centre (CPC), Bengaluru.The primary issue was the CPC's failure to apply the concessional tax rate of 22% under section 115BAA of the Income-tax Act, despite the assessee filing the necessary Form-10IC on December 15, 2020, and opting for the concessional rate. The CPC instead computed the tax at 30%.The Tribunal noted that the intimation notice itself acknowledged the assessee's election for the concessional rate under section 115BAA. The CIT(A) had erroneously concluded that the assessee did not opt for this rate. The Tribunal found this conclusion unjustified, given the evidence of the timely filing of Form-10IC and the acknowledgment in the intimation notice.Consequently, the Tribunal set aside the CIT(A)'s order and directed the Assessing Officer to compute the tax at the concessional rate as elected by the assessee. The appeal was allowed, with the order pronounced on October 25, 2024.
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